Troy Resources confirms ‘spectacular’ drill results from Smarts gold target at Karouni

A three-hole drilling program to define an initial ore reserve at the Smarts Underground prospect within the Karouni gold project in Guyana, South America has returned a “world-class and spectacular” drilling result for owner Troy Resources (ASX: TRY).

The second diamond hole at the high-grade target confirmed the presence of 16 different zones of anomalous gold mineralisation commencing at 28m to a depth of 445m, with a bonanza intersection of 11m at 131.93 grams per tonne from 223m.

Best results also included 14m at 8.39g/t from 248m; 6m at 7.56g/t from 209m; 2m at 24.49g/t from 141m; and 25m at 2.7g/t from 171m.

Troy chief executive officer and managing director Ken Nilsson said the 11m intersection represents the “highest product of metres x grams” to date from the Smarts prospect and is “world-class by any standards”.

“My career has spanned multiple mining operations across multiple continents, and I have only once previously seen results anywhere near as spectacular as those we have generated from this second hole,” he said.

“These assays represent a step change at Smarts and continue to highlight the potential to add high-grade ounces to the mining inventory and extend the mine life at Karouni.”

Drilling results

Drilling at Smarts Underground commenced in September and has been designed to complete the work necessary to define an initial ore reserve.

Earlier this month, Troy announced a string of assays from the first drill hole including 1m at 57.6g/t gold from 221m and 3m at 10.3g/t from 261m.

They were considered the “best results ever recorded” by the company at Smarts.

Also reported was an assay of 13m at 13.74g/t gold from 273m, including 2m at 36.95g/t from 273m; 2m at 20.34g/t from 277m; and 1m at 56.13g/t from 284m.

The results from the second hole are believed to be “significantly better still” and are world-class in nature.

Troy has recently completed the third and final hole of the program and is awaiting assay results.

New program

Mr Nilsson said planning has commenced for a new program at Smarts to encompass an additional nine holes for an aggregate 1,500m to test for strike extensions to the north-west.

“There is enormous exploration potential [at Smarts] which remains open along strike and at depth,” he said.

“The prospect certainly has the ability to make a significant financial impact on the Karouni project and the value of our company.”

A maiden ore reserve for the prospect remains on track for release before year end.

Quarterly production

Troy this week confirmed Karouni production results for the September quarter had been impacted by COVID-19 disruptions.

The company treated 201,812 tonnes at an average grade of approximately 1.03g/t gold with average recovery of approximately 95.4% for production of 6,334 ounces.

Grades were lower than expected, reflecting limited access to higher-grade Hicks 4 ore as a result of regional wet conditions and throughput supplemented with the treatment of mineralised waste.

“Production for the quarter was in part affected by the wet season, which endured longer than normal, as well as travel restrictions resulting from COVID-19 which prevented the return to site of many members of the senior management team,” the company reported.

“Importantly, the COVID-19 situation has improved with key management staff back to site, which will likely have a positive impact on operations moving forward.

“Mining and processing activities have returned to normal levels with much drier conditions now prevailing.”

Troy has reiterated its production guidance for the 2021 financial year of up to 40,000oz at an all-in sustaining cost (ASIC) per ounce of between US$1,450 and US$1,550.